Conducting a Successful Broadband Feasibility Study Mark Mrla - - PowerPoint PPT Presentation

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Conducting a Successful Broadband Feasibility Study

Mark Mrla & Chris Konechne – Finley Engineering Company

Blandin Foundation – 2019 Broadband Conference Grand View Lodge – Nisswa, MN October 9, 2019

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Finley Engineering Experience

• Completed over 20 studies in the last 3 years
• 13 of those were MN counties and cities
• Nearly all of the MN studies ended with built out networks
• Those that haven’t, are too recent and are working that

direction

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What Do You Want From a Feasibility Study?

• Mapping of network options
• Financial business cases
• Provider options
• Partnership options
• Funding options
• Market/needs assessment
• Audit existing network / mapping
• Community engagement guidance
• Network designs/technologies
• Costs

Typically…….

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RFP Cautions

• Do research before engaging a consultant and

sending out an RFP. Some consultants are putting out bad RFP’s

• How much are you asking to be done? Many

RFP’s are requiring steps that are not yet needed.

• Are you required to take low price?
• Can you compare apples to apples when you get

your RFP responses?

Request for Proposal (RFP) Assessment GIS Maps Provider Assets Budget Design Inventory

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Key Players

• Experienced professionals (engineering,

financial, legal, etc.) at certain times

• Study owner’s team
• Potential providers
• The community
• Possibly potential investment partners

Who Should be Involved?

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Options, Options, Options

• Design Options
• Technology Options
• Financing/Funding Options

There are hundreds of options that could be studied… You can’t study them all The key to finding the best solution is

• Gathering the right data
• Evaluating the right options
• Partnership Options
• Business Structure Options
• Timing Options

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Funding

Funding Option Examples

• Cash or general funds
• Bonding – revenue, G.O., etc
• Bank or other loans
• Investors
• Federal or state grants and loans
• 3rd party grants (such as foundations)

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Feasibility Studies in Minnesota are Now More Important than Ever

• MN has one of the best broadband grant programs in the

country

• MN has successfully offered broadband grants since 2014
• MN has provided consulting to over 25 other states on language for

their proposed broadband bills/legislation & grant applications

• MN has approved 2 years of grant money for applications in 2019 &

2020 Population – 5.6 Million

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Minnesota Broadband Grant Program Stats

Year Apps Submitted Apps Awarded Total App Amounts Requested Total Amount Available to Award Total Locations Served by Apps 2014 40 16 $ 44.2M $ 20M 6,333 2015 44 15 $ 29.0M $ 10.588M 4,089 2016 57 40 $ 54.2M $ 35M 16,708 2017 70 39 $ 50.3M $ 20M 12,202 2018 $15M approved by legislature, but governor vetoed budget bill due to other contents 2019 80 $ 68.1M $20M 2020 $ 20M

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Timing

• Our typical studies fall into a 2 to 4 month timeframe,

but could be shorter or longer depending upon:

• Size
• Complexity
• Details and services required
• Number of players involved
• Availability of GIS/maps and other information

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Community Involvement

There is usually a need to get at least some of the community actively involved in the process for:

• Awareness, education, needs assessment
• 2 or more champions to drive it forward
• Surveys
• Speed test verifications
• Service commitment signups to verify adequate take‐rates

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Study First Steps

• Assemble a team
• Educate team
• Speeds and technology
• Challenges providers are facing,

economics of broadband

• Research
• Areas of need
• Identify resources

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Study First Steps

• Set Goals
• Primary
• Secondary
• Provider Engagement
• Evaluate existing providers and

their plans

• Community Engagement
• Educate Community on process and

get feedback

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Provider & Project Obstacles

• Economics
• Funding Options
• Making the case
• Who will take service?

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Technologies

• Fiber
• The “ultimate” solution
• Can be prohibitively expensive, can

be 7X cost of a wireless network

• Aerial v. Buried
• Time to deploy
• Low maintenance cost

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Technologies

• Wireless
• Adequate for today’s needs
• Technology is steadily improving
• Cost effective
• Quick deployment
• Fight for Spectrum
• Coverage Challenges
• Tower Assets?
• What does 5G mean for rural

America

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Building the Model

• Reality – We can’t know

what project might come from a study.

• Model = Flexibility
• Factors Driving Accuracy
• Data
• Detail
• Scope

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Study Results

• Providers
• Public
• Identify Next Steps
• Local Contributions
• Maintain Momentum
• Project Partners
• Singles vs. Homeruns
• Update Model as Required